Crypto exchanges have listed unregistered securities and the regulator plans to fight this. This is the leitmotif of the upcoming September 14 speech by the head of the SEC Gary Gensler in the US Senate.
“The regulator will avoid ‘warning shots’ and ‘clarifications’… Gloves have been dropped… now combat mittens,” lawyer Jeremy Hogan described the published transcript of the chairman of the Commission.
“The tone is more negative than his previous remarks,” commented Caitlin Long, founder and CEO of cryptocurrency bank Avanti.
The document reads:
“Many platforms have tens or hundreds of tokens. While the legal status of each token depends on its own facts and circumstances, the likelihood that with 50, 100, or 1000 tokens, any given platform has zero securities. Make no mistake: to the extent that there are securities on these trading platforms, in accordance with our legislation, they must register with the Commission, unless they have the right to be excluded.”
Gensler has noted in an interview with the Financial Times that regulation is necessary for the survival of cryptocurrencies.
In May, he called on Congress to clarify the crypto industry’s regulatory framework.